The global head of digital asset research at Standard Chartered, Geoff Kendrickstates that the value of Bitcoin (CRYPTO:BTC) could skyrocket to $200,000 by the end of 2025.
What happened
A research note from Kendrick, published on Thursday, indicates that Bitcoin’s recent rally, surpassing the $100,000 mark, is primarily due to institutional investors.
These investors are showing increasing interest in spot ETFs, while MicroStrategy Inc. (NASDAQ:MSTR), a company focused on Bitcoin development, has been rapidly acquiring the asset.
Kendrick projects that institutional flows will continue at or even exceed the current pace through 2025. Additionally, he suggests that regulatory changes under US President-elect donald trump could amplify these flows.
“In 2025, we expect institutional flows to continue at the pace of 2024 or exceed it. In this context, we believe that our Bitcoin price goal for the end of 2025, around $200,000, is achievable,” Kendrick stated in the publication.
MicroStrategy’s aggressive Bitcoin acquisition strategy, which includes a $42 billion plan to purchase Bitcoin over the next three years using equity and debt, is progressing faster than anticipated, according to Kendrick.
According to a report by Decryptthe company’s Bitcoin holdings, currently valued at more than $40.5 billion, have increased by 150,000 Bitcoin since Election Day, marking an increase of more than $15 billion.
Kendrick also predicts an increase in Bitcoin allocations by pension funds towards spot ETFs in 2025. If US retirement funds or global sovereign wealth funds also increase their allocations, Standard Chartered’s bullish stance on Bitcoin price could intensify further.
Despite a recent drop, Bitcoin’s price remains above the $100,000 mark, fueling optimism among some analysts about the Cryptocurrency‘s near-term prospects.
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Why is it important
The predicted rally in Bitcoin’s value is significant as it indicates growing confidence in the cryptocurrency’s potential to generate high returns.
Growing interest from institutional investors, combined with regulatory changes, could boost Bitcoin’s value further. MicroStrategy’s aggressive acquisition strategy underscores the growing acceptance and adoption of Bitcoin as a viable investment.
The potential increase in Bitcoin allocations by global pension funds and sovereign wealth funds could further cement Bitcoin’s position in the investment landscape.
Photo courtesy of Shutterstock
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